Daily News 19

Category: Coins

Digital assets, cryptocurrencies, blockchain, and currency news.

  • Ripple Reports 80% of Users Donate to Humanitarian Causes

    Ripple Reports 80% of Users Donate to Humanitarian Causes

    Ripple Highlights User Humanitarian Engagement as 80% Report Donating or Volunteering

    Ripple is generating industry discussion this week not through a product launch or regulatory filing, but via a striking claim about its community: 80% of its users actively donate money or volunteer for humanitarian causes. The statistic, shared in a recent company post, has thrust Ripple humanitarian donations into the crypto spotlight, prompting debate over whether user goodwill can translate into stronger market positioning for the payments firm.

    Key Takeaways

    • Ripple states 80% of its users participate in humanitarian donating or volunteering, per a company post.
    • The claim aligns with Ripple’s core pitch: faster, cheaper cross-border payments that aid distribution.
    • Analysts are monitoring whether the community response lifts Ripple’s reputation and XRP market sentiment.
    • Future crypto donation regulations could shape how Ripple and peers manage philanthropic activity.
    • The humanitarian push coincides with Ripple’s expansion via EDX Markets integration and RLUSD stablecoin growth in Turkey.

    Community Ethos Drives Ripple’s Humanitarian Narrative

    Ripple frames the 80% figure as evidence of a user base motivated by more than price speculation. The data originates from the company’s own reporting rather than an independent survey, yet it has ignited conversation about how deeply Ripple’s community is embedded in social causes.

    Reputation in crypto often hinges on community behavior as much as technology. High participation in humanitarian efforts could differentiate Ripple from competitors focused solely on institutional deals. If the trend persists, it may pressure other platforms to spotlight or incentivize similar philanthropic engagement among their users.

    Technology Infrastructure for Aid Distribution

    Ripple’s humanitarian pitch rests on a practical advantage: moving aid funds faster and cheaper than traditional banking rails allow. The company positions its cross-border payment network as critical for organizations needing to transfer funds rapidly during emergencies.

    By explicitly tying its settlement speed and low transaction costs to humanitarian outcomes, Ripple gives its infrastructure a mission-driven narrative. That framing matters for adoption, as nonprofits and institutions evaluating crypto rails often weigh mission alignment alongside technical performance.

    Market Sentiment and Regulatory Outlook

    For traders, the immediate question is whether goodwill drives demand. Ripple’s values-driven story arrives amid mixed crypto market signals, where narrative shifts can influence sentiment even without fundamental changes.

    Observers should track Ripple’s humanitarian initiatives as a potential driver of user engagement and market perception. A positive community response could increase demand for Ripple’s services over time. This narrative runs parallel to concrete business moves, including the EDX Markets integration expanding institutional brokerage access and the RLUSD stablecoin surpassing a $1.7 billion market cap following its Turkey launch.

    Separate analysis from The Motley Fool noted XRP’s price briefly dipped below $1 in August 2026 before recovering, with the token’s market cap near $91 billion — a reminder that Ripple’s corporate and philanthropic momentum does not always correlate directly with XRP price action, given the token’s structural independence from the company’s daily operations.

    Regulatory Uncertainty Remains a Wild Card

    Future rules governing crypto donations could reshape how Ripple and similar firms operate, especially if regulators increase scrutiny of digital asset flows through charitable channels. For now, the humanitarian angle provides Ripple a distinct narrative in a market saturated with technical upgrades and partnership announcements — one built on crypto community philanthropy rather than infrastructure alone.

    Frequently Asked Questions

    What percentage of Ripple users participate in humanitarian aid?

    Ripple reports that 80% of its users are actively donating or volunteering for humanitarian aid.

    How does Ripple support humanitarian efforts using technology?

    Ripple focuses on enabling faster and cheaper cross-border payments that facilitate humanitarian aid distribution.

    What impact could Ripple’s humanitarian initiatives have on the market?

    Strong community participation in humanitarian aid could enhance Ripple’s reputation and positively influence market sentiment.

    Are there regulatory considerations related to Ripple’s humanitarian aid efforts?

    Future regulatory developments around crypto donations may affect Ripple’s operations and how it engages in humanitarian initiatives.

  • Ledger Denies Hack Claims as Patched Ethereum App Vulnerability Emerges

    Ledger Denies Hack Claims as Patched Ethereum App Vulnerability Emerges

    Ledger has denied hacking allegations following the publication of a laboratory demonstration showing a technical flaw in an outdated version of its Ethereum application. The hardware wallet manufacturer clarified on Thursday, August 27, 2026, that the security patch had been deployed prior to the public disclosure of the vulnerability.

    No Ledger user was hacked.
    What’s described here is a lab reproduction of a vulnerability in an outdated version of the Ethereum app.
    The issue was already identified through our security process and fixed in Ethereum app 1.22.2, released August 13, before this post. The…
    — Ledger (@Ledger) August 27, 2026

    Origin of the Controversy

    The controversy began when security researchers from rival firm OneKey posted on social media that they had successfully recreated an attack in a controlled lab setting. OneKey CEO Yishi Wang stated that the weakness stemmed from a race condition between the data buffer and the physical device’s visual interface. This flaw allowed an attacker with control over the intermediary software to overwrite a transaction while the user was reviewing the legitimate operation on screen. Technical data shared by the researchers indicates that this vector could redirect funds to external wallets without reflecting the modification on the physical device.

    Ledger’s Response and Technical Rebuttal

    Ledger’s Chief Technology Officer, Charles Guillemet, immediately rejected the narrative of a security breach in the manufacturer’s infrastructure. The company’s official documentation notes that reproducing a bug on an obsolete version within a lab does not constitute an active vulnerability or a compromise of user funds. The bulletin issued on August 27, 2026, specifies that an attack of this nature required the host computer to be previously compromised by malware or connected to a malicious web platform. Additionally, the technical report confirms that the private keys stored in the hardware’s secure element were never exposed.

    Patch Timeline and Technical Details of the Vulnerability

    The issue originated in the internal application designed to manage transactions on the Ethereum network and compatible tokens. In version 1.22.1, a malicious web application with permissions to connect to the device could send a secondary signing instruction while the user was examining the first.

    The manufacturer identified the issue internally and rolled out update 1.22.2 on August 13, 2026. The firm’s report details that the changes introduced two key safeguards: rejecting new signing sessions while a review is underway and voiding confirmations if the memory state differs from what is displayed on the screen.

    To secure the application ecosystem, the development team updated its software development kit (Secure SDK) to version 26.6.1 on August 21, 2026. Through this procedure, the company rebuilt the entire application catalog to prevent similar vectors across other digital assets.

    User Guidance and Ongoing Monitoring

    The Ledger Donjon security research team noted that this incident highlights the need for regular update practices on cold wallets. The modular hardware architecture allows patches to be applied to peripheral software without compromising the original recovery seed.

    To verify device protection, users should check in Ledger Live that the Ethereum app is updated to version 1.22.3 or higher. The manufacturer will continue monitoring its software repositories and will publish new update logs in its application manager during upcoming scheduled reviews.

  • KuCoin Can Block Your Crypto Transactions Even If You Never Sent Funds to 17 Sanctioned Platforms

    KuCoin Can Block Your Crypto Transactions Even If You Never Sent Funds to 17 Sanctioned Platforms

    KuCoin Expands Sanctions Screening to Indirect Crypto Transfers Across 17 Platforms

    KuCoin has broadened its sanctions compliance framework to cover indirect cryptocurrency transfers involving 17 platforms, including the Justin Sun-linked $HTX. The policy, outlined in an August 27 compliance notice, means users may face transaction holds or rejections even when they do not interact directly with a listed entity.

    Platforms Covered by the New Restrictions

    The affected platforms include:

    • Shelbit
    • Aban Tether
    • A7 Nigeria
    • A7 Africa
    • PilotFinance
    • Rapira
    • Aifory Pro
    • ABCeX
    • WhiteBird
    • NoOnecrypto
    • Tradex
    • Monease
    • BitPapa
    • Exnode
    • Exnode Pay
    • EXMO
    • $HTX (Huobi Global SA)

    How Indirect Screening Works

    Under the updated policy, KuCoin may screen the source of funds, originating and destination addresses, and intermediary service providers for connections to the listed entities. Transactions attempted to these platforms may undergo enhanced review or trigger temporary wallet and account restrictions. Repeated or serious violations could ultimately lead to suspension or withdrawal of KuCoin services for the user.

    The controls broadly align with recent U.S. and European sanctions actions, but their reach extends beyond direct counterparties. KuCoin has not disclosed how many transaction hops it traces or what level of on-chain attribution is sufficient to establish an indirect connection.

    $HTX Faces Growing Isolation From Major Exchange Rails

    $HTX is the most consequential name on KuCoin’s list by scale and is already facing similar restrictions elsewhere. Binance stopped processing transactions involving $HTX and 10 other platforms from August 23 as part of its own sanctions-compliance measures. This narrows the routes through which $HTX-linked funds can move across major exchanges even as $HTX itself remains operational.

    Corporate Identity Dispute

    $HTX continues to dispute the sanctions-related allegations and the corporate identity behind the designation. The EU regulation names “$HTX (Huobi Global SA)”, a label also used by KuCoin. However, $HTX said in May that Huobi Global S.A. is distinct from the online $HTX exchange.

    Meanwhile, the Justin Sun-linked exchange said it is pursuing legal and compliance discussions with authorities in the UK and EU as some users report funds being frozen on third-party platforms, including Kraken. $HTX said it has submitted materials relating to 17 Kraken user freeze cases to the courts and is working to reduce disruptions affecting customers.

    Operational Updates From $HTX

    Molly, $HTX’s head of markets, said the exchange processed more than 100,000 deposit and withdrawal transactions over two days without identifying new cases of indiscriminate freezes. She also said $HTX recently upgraded its wallet infrastructure and introduced a withdrawal-address rotation mechanism. The exchange described the changes as a security measure intended to reduce disruption from third-party risk controls and on-chain labeling.

    Implications for Users and Transaction Provenance

    For users, the practical effect is increasingly clear. Funds linked to $HTX or another listed provider can face restrictions before they reach KuCoin, depending on the transaction path and the intermediaries involved. That pushes sanctions enforcement beyond direct counterparties and deeper into transaction provenance, with exchanges increasingly assessing where funds originated, where they are headed, and which services they touched along the way.

  • HashKey Cloud Backs Stacks’ Genesis Bond, Signaling Institutional Demand for Native Bitcoin Yield

    HashKey Cloud Backs Stacks’ Genesis Bond, Signaling Institutional Demand for Native Bitcoin Yield

    HashKey Cloud Joins Stacks Genesis Bond Pilot as Second Institutional Participant

    Stacks founder Muneeb Ali announced on August 27 via X that HashKey Cloud will deploy Bitcoin in the Stacks network, making the Asian infrastructure provider the second institution confirmed for the network’s Genesis Bond pilot program.

    How the Genesis Bond Structure Works

    Under the protocol’s native-BTC bond design, participants time-lock Bitcoin on Bitcoin’s base layer while retaining full custody of their private keys. The committed BTC remains outside any lending agreement, wrapper, or third-party custody arrangement—it stays immobile for the bond duration unless the participant uses an early-exit path.

    HashKey will pair its time-locked BTC position with STX tokens worth approximately 5% of the committed Bitcoin amount. This STX collateral determines the participant’s Bitcoin capacity and exposes the position to STX price movements for roughly six months.

    Yield Mechanics and Miner Economics

    Stacks targets approximately 3% annualized yield from BTC committed by Stacks miners. Miners commit BTC as they compete to produce blocks and receive STX block rewards. Protocol bond holders receive their target return first from this BTC pool.

    Across 24 reward cycles—spanning roughly six months—a bond would deliver about 1.44% of locked BTC if the target is realized. However, payouts are variable and depend on Stacks miner economics, which in turn rely on STX block rewards, transaction fees, and overall network activity.

    Excess miner revenue can build a reserve buffer. Under a sustained shortfall that depletes this reserve, Stacks indicates returns would compress first for STX-only stakers and later for protocol-bond holders.

    Key Risk Factors: Self-Custody Does Not Eliminate All Risk

    The design separates principal custody from return generation. While Bitcoin keys remain with the participant, the yield carries:

    • STX market exposure — the 5% STX collateral fluctuates in value
    • Stacks protocol risk — including smart contract vulnerabilities
    • Miner-funded payout risk — yield depends on miner revenue sustainability

    An early exit returns the BTC principal and ends remaining yield, while the paired STX stays locked for the full term—creating different liquidity constraints for the two asset legs.

    Managed Bootstrap Phase Before Permissionless Auction

    The first bond operates inside a managed bootstrap phase (PoX-5) rather than an open auction. During this period, the Stacks Endowment sets each bonding period’s capacity, target yield, BTC-to-STX ratio, and allocation.

    A future PoX-6 proposal aims to replace these managed settings with an algorithmic, permissionless auction. Until then, Genesis tests the product within boundaries chosen by the Endowment.

    On-Chain Transparency and Institutional Signaling

    On-chain commitments will reveal the amount of BTC institutions place in the bond when it begins around September 10. Weekly distributions will show whether miner revenue supports the target yield, and reserve data will indicate the buffer available during revenue shortfalls.

    HashKey’s participation alone establishes institutional involvement. Its disclosed allocation and the bond’s realized payouts will determine how much weight that participation carries as evidence of institutional demand.

    Technical Audit Status and Known Issue

    PoX-5 activated at Bitcoin block 960,230 on July 30. Stacks stated the codebase was audited by Trail of Bits and Clarity Alliance, with additional review by Asymmetric Research.

    However, an open medium-severity issue in the official stacks-core repository identifies a flaw in the bond rollover path. Near the end of a bond, a participant moving into a later bond can remain credited with old reward shares after withdrawing the collateral behind them—potentially reducing the final-cycle reward share for other participants.

    The issue does not affect the native Bitcoin under the participant’s keys and does not establish a failure in ordinary Genesis Bond enrollment. The 4.0.1 PoX-5 contract source still contains the affected behavior, making a public fix or mitigation important before the rollover window arrives at block 966,350.

    What to Watch Next

    The Genesis Bond reduces reliance on a borrower or custodian but introduces STX exposure, miner-funded payout risk, managed program settings, and new contract code. Block 966,350 will begin putting real numbers to the test, revealing whether the incentive structure holds under live conditions.

  • ‘This is huge’ – Bitcoin completes first quantum-resistant transaction

    ‘This is huge’ – Bitcoin completes first quantum-resistant transaction

    Bitcoin Achieves First Quantum-Resistant Transaction via StarkWare and MARA Foundation

    The Bitcoin network advanced its quantum defense capabilities this week as StarkWare and the MARA Foundation announced the execution of the first known quantum-resistant Bitcoin transaction on August 27.

    Industry Leaders React to Milestone

    Eli Ben-Sasson, CEO of StarkWare, described the development as a pivotal moment for Bitcoin’s post-quantum future.

    This is huge! First, because the fact that we can have a quantum-safe tx on Bitcoin is a real accomplishment. Second, it shows that we can actually find and implement solutions to make Bitcoin and other chains, quantum-ready. We just need to decide that this is the path forward.

    Ben-Sasson further characterized the update as “huge” for the path forward for the post-quantum era for Bitcoin and other chains.

    Understanding Bitcoin’s Current Quantum Vulnerability

    Currently, Bitcoin held at rest behind modern wallet addresses—including Pay-to-Public-Key-Hash (P2PKH) and Native SegWit (P2WPKH)—remains quantum resistant. These address types display only a hash, which conceals the public key on public blockchains and makes it challenging for quantum computers to crack.

    However, a critical vulnerability emerges during spending. The moment a user spends from these addresses, the actual public key is revealed to the blockchain. This exposure makes address reuse susceptible to theft if sufficiently powerful quantum computers become operational.

    Quantum-Safe Bitcoin Transactions Without a Soft Fork

    In April 2024, StarkWare’s Avihu Levy proposed a scheme called quantum-safe Bitcoin (QSB) transactions designed to enhance security without requiring a soft fork. The objective is to provide quantum-resistant protection during the BTC spending process, buying the network time while it explores a protocol-level consensus change for a network-wide upgrade.

    The primary limitation of the QSB scheme is its reliance on private mempools—a waiting area before miners validate or confirm transactions. This inaugural transaction was facilitated through MARA’s private mempool, Slipstream.

    MARA Foundation Perspective on Private Mempools

    Isabela Foxen, head of the MARA Foundation, offered a measured assessment of the approach.

    While we don’t believe private mempools are an appropriate long-term solution for Bitcoin quantum resistance, we’re happy to explore ways Slipstream can support break-glass techniques while we wait for a consensus change.

    Blockstream Advances SHRINCS Proposal

    Separately, Adam Back’s Blockstream released a Bitcoin Improvement Proposal (BIP) for a post-quantum signature scheme dubbed SHRINCS. The firm characterized it as a “very good trade-off” among current options for the final network-wide upgrade.

    Despite Adam Back downplaying the immediacy of quantum threats, Blockstream has been actively working behind the scenes to accelerate advancement. The BIP will require extensive discussion, criticism, and refinement before potential adoption as the definitive post-quantum upgrade.

    Prediction market data from Polymarket currently indicates the market is pricing only a 5% chance that such an upgrade could occur this year.

    Outlook: Progress Made, Path Uncertain

    Bitcoin’s first quantum-safe transaction executed without a soft fork represents a commendable and positive step forward. However, a final and lasting network-wide upgrade pathway remains uncertain as of writing.

  • THORChain Privacy Upgrade Drives RUNE 26% Higher — Can Bulls Break $0.65?

    THORChain Privacy Upgrade Drives RUNE 26% Higher — Can Bulls Break $0.65?

    THORChain ($RUNE) Surges 26% After v3.20 Upgrade Enables Privacy Coin Swaps

    $RUNE rallied more than 26% in the past 24 hours, making it the top gainer among the top 200 cryptocurrencies by market capitalization. The price spike coincided with the launch of the THORChain v3.20 upgrade and a broader recovery across the crypto market. Daily trading volume tripled to exceed $20 million, though it remains modest relative to the token’s market cap.

    THORChain v3.20 Goes Live, Unlocking XMR and ZEC Swaps

    The network confirmed that the v3.20 upgrade went live on August 26. The release introduces native cross-chain swapping for Monero (XMR) and Zcash (ZEC) against Bitcoin (BTC), Ethereum (ETH), and major stablecoins. By bridging privacy-focused assets directly into THORChain’s liquidity pools, the upgrade expands the protocol’s addressable market and brings a new cohort of privacy-conscious users into its ecosystem.

    This development arrives three months after an exploit drained over $10 million from THORChain across BTC, ETH, and BSC networks. Since then, the protocol has rebuilt confidence, with swap volume data from DeFiLlama showing consistent dominance from Bitcoin and Ethereum. The chain currently averages roughly $7 million in daily BTC swaps and $10 million in daily ETH swaps.

    Source: DeFiLlama

    Short Liquidations Amplify the Move

    The sudden influx of buying pressure triggered a cascade of short liquidations in the perpetual futures market. According to CoinGlass data, $RUNE short positions worth roughly ten times the value of long positions were wiped out during the surge, adding fuel to the upside momentum.

    Source: CoinGlass

    Technical Outlook: Can Bulls Flip $0.65 Resistance?

    On the daily timeframe, the 200-day Exponential Moving Average (EMA) signals a shift to a long-term bullish trend. However, horizontal price structure remains bearish. $RUNE is still trading below the $0.65 zone, which marks the last lower high of the prior downtrend. Bulls tested this supply zone but faced immediate rejection, leaving it unclear whether buyers have the conviction to breach resistance decisively.

    Source: $RUNE/USDT on TradingView

    On-chain and derivative metrics offer mixed signals. Cumulative Volume Delta (CVD) data shows aggressive accumulation, with 1.78 million $RUNE bought on Binance as of press time. Meanwhile, a Sentiment reading of 80 indicates the crowd is convinced the rally is sustainable. Yet the move remains largely sentiment-driven, raising the risk of a short-lived spike if the market structure fails to confirm a trend change.

    Key Takeaways

    • $RUNE surged over 26% in 24 hours after the THORChain v3.20 upgrade, leading all top-200 crypto assets.
    • The upgrade enables direct swaps for Monero (XMR) and Zcash (ZEC) into BTC, ETH, and stablecoins, expanding THORChain’s user base.
    • Short liquidations were extreme, with shorts liquidated at roughly 10x the volume of longs.
    • Price remains below the critical $0.65 resistance; a successful flip to support would confirm a structural shift to bullish.
    • CVD and sentiment data show strong buying interest, but sustainability depends on whether the rally transitions from sentiment-driven to structure-confirmed.
  • Jito (JTO) Price Falls Despite $24M Spot Buying – Bears at Risk

    Jito (JTO) Price Falls Despite $24M Spot Buying – Bears at Risk

    Jito’s native token JTO is showing a notable divergence between its price action and spot market behavior, according to data from CoinGlass. While the token has declined approximately 9.69% this week, spot market data reveals consistent accumulation over the past four days, suggesting investors are treating the pullback as a buying opportunity.

    Spot Accumulation Amid Price Decline

    The spot market has recorded net inflows of $2.02 million across exchanges over the four-day period, with total buy volume reaching roughly $24.72 million. This persistent accumulation, where outflows (accumulation) exceed inflows (distribution), typically signals a bullish near-term outlook as market participants anticipate future outperformance.

    The single largest accumulation day occurred on August 25, accounting for the majority of the netflow. Notably, JTO’s price dropped 15.13% between the high and low of that day’s candle, per TradingView data. The combination of heavy buying during a sharp intraday decline indicates that investors may view the lower prices as an attractive entry point.

    On-Chain Capital Expansion

    On-chain metrics reinforce the accumulation narrative. Total Value Locked (TVL) across the Jito protocol has surged by $243.81 million since August 19, bringing the total to approximately $1.017 billion, according to DeFiLlama. TVL measures capital deposited to earn yield and is widely regarded as a gauge of confidence in a protocol’s long-term prospects.

    Protocol revenue has also climbed, with daily fees hitting roughly $504,000 — the highest level since May 11. This concurrent rise in TVL and fee generation suggests that capital commitments are being matched by genuine increases in protocol activity.

    Funding Rate Signals Growing Short Positions

    Despite the bullish spot and on-chain signals, derivatives data warrants caution. CoinGlass reports that the funding rate has fallen from 0.0143% to 0.0060%, indicating a growing dominance of short positions in the perpetual futures market. If this trend continues and the funding rate flips negative, it could exert additional downside pressure on JTO in the near term.

    For now, the market remains in a clear accumulation phase, with spot buyers absorbing supply even as leveraged traders build bearish bets.

    Key Takeaways

    • Spot investors purchased roughly $24.72 million worth of JTO over four days, driving a netflow of $2.02 million.
    • TVL has grown $243.81 million to $1.017 billion, accompanied by a multi-month high in protocol fees.
    • Funding rate decline signals rising short interest, presenting a potential headwind if the trend accelerates.

    Sources: CoinGlass, DeFiLlama, TradingView

  • Genius Group Plans $827M Bitcoin Treasury, $800M AI Treasury

    Genius Group Plans $827M Bitcoin Treasury, $800M AI Treasury

    Genius Group Proposes Perpetual Preferred Securities to Fund $2 Billion Bitcoin and AI Treasury Strategy

    Genius Group announced on August 27 its intention to raise capital through publicly registered perpetual preferred securities, targeting an $827 million Bitcoin treasury and an $800 million AI portfolio within a $2 billion total-asset goal for fiscal 2031. The NYSE American-listed company plans to utilize its $1.2 billion shelf registration, which the Securities and Exchange Commission declared effective on July 18, 2025, to issue the securities over time.

    Preferred Securities Structure and Initial Offering Details

    Under the preliminary proposal, Genius Group would seek $12.5 million in its first preferred securities offering. The company expects the instruments to be non-convertible and to carry a variable dividend paid monthly. Funds from the sale would be allocated among the Bitcoin treasury, the AI treasury, and a U.S. dollar reserve equal to approximately 18 months of preferred dividend payments. Genius Group did not disclose how much of the initial proceeds each allocation would receive.

    Discussions have begun with investment banks experienced in preferred securities and digital asset treasury financing. However, the final issue price, dividend rate, offering size, exchange listing, and sale date remain undecided. Any offering would require separate materials filed with or furnished to the SEC, and the structure will depend on board approval, applicable securities laws, regulatory requirements, and market conditions, according to the announcement.

    Shareholder Authorization and Current Financial Position

    Shareholders provided corporate authority at Genius Group’s annual meeting in July. Approximately 97.58% of votes supported giving the board authority to issue preferred shares, while 99.54% approved a mandate allowing the company to repurchase up to 20% of its ordinary shares.

    The company currently reports net assets of $106.6 million, following a 57% year-over-year increase announced on August 13. Genius Group calculated its net asset value at $0.62 per ordinary share. With GNS closing at $0.18 on August 26, the company said its stock was trading at approximately 0.29 times book value, compared with what it described as a 2.60-times average for the U.S. education sector.

    Five-Year Net Asset Value Projection

    Management has forecast that net asset value could reach between $2 and $4 per share over five years if the company executes its financing, asset-purchase, and share-buyback plans. The projection also depends on market conditions and the performance of Bitcoin and its AI investments.

    Chief executive Roger James Hamilton described perpetual preferred capital as a way to fund treasury purchases without issuing more ordinary shares.

    “Every dollar of preferred capital deployed into our Bitcoin and AI Treasury that generates returns above the preferred dividend rate flows directly to our ordinary shareholders’ net asset value.”

    Returns above the dividend cost could add to the assets attributable to ordinary investors. If the acquired assets lose value or earn less than the dividend rate, however, the preferred payment obligations would remain senior to ordinary shareholder distributions. Genius Group identified Bitcoin price volatility, changes in private technology company valuations, financing costs, and capital availability among the factors that could cause actual results to differ from its forecasts.

    Strategy’s Bitcoin Financing Program Serves as Reference Model

    For its proposed securities, Genius Group has taken Strategy’s Bitcoin financing program as its main reference. The company said Strategy has raised more than $16 billion through four perpetual preferred stock series since introducing STRK in January 2025.

    The preferred securities have no fixed maturity and do not require repayment on a set date. Their dividends and senior claims still create costs that treasury assets must cover before any excess return reaches ordinary shareholders.

    Investor demand has emerged for some of the products. In May, Strategy’s STRC security recorded $1.53 billion in daily trading volume, crypto.news reported, drawing attention to the use of dividend-paying stock to fund corporate Bitcoin holdings.

    Market prices can also depart from the issue or liquidation value. STRC fell to an intraday low of $82.50 on June 18 before closing near $88.59, well below the approximately $100 level around which the security was designed to trade.

    Strategy later used Bitcoin sales to support the preferred program. An August 10 SEC filing showed that the company sold 1,690 BTC for $108.6 million between August 3 and August 9, using the proceeds to repurchase about 1.15 million STRC shares. A subsequent filing showed Strategy spent $132.2 million on additional STRC repurchases and $52.4 million on related dividends during the following week. It also placed $149.1 million into its U.S. dollar reserve, bringing the cash pool to $4.8 billion.

    For U.S. investors, Genius Group’s final prospectus will determine the economic and legal terms of the proposed security. Until those documents are available, its dividend rate, liquidation preference, call provisions, exchange access, and possible tax treatment remain unconfirmed.

    Bitcoin Purchase Timeline and Treasury Evolution

    Before developing the dual-treasury plan, Genius Group pursued a Bitcoin-first policy under which it intended to hold at least 90% of its reserves in BTC. The company adopted the policy in November 2024 and planned an initial $120 million purchase program. By January 2025, it held 420 BTC after buying another $5 million at an average price of $95,912 per coin. Holdings later reached a peak of 440 BTC.

    A U.S. court order disrupted the program in early 2025 by restricting the company from selling shares, raising funds, or buying Bitcoin during a legal dispute tied to its asset purchase agreement with Fatbrain AI. Genius Group reduced its Bitcoin holdings while seeking relief from the restrictions.

    After the order was lifted, the company resumed purchases in June 2025 and increased its balance to 100 BTC. Management also restored a target of accumulating 1,000 BTC. Liquidity needs later forced another change. Genius Group sold its remaining Bitcoin during the first quarter of 2026 and used the funds as part of the repayment of $8.5 million in debt.

    Before the final sale, the company reported holding 84 BTC valued at approximately $5.7 million in March. Its April 1 operating update said it would rebuild the treasury when management considered market conditions more favorable. Under the latest timetable, Bitcoin purchases are expected to restart in the fourth quarter of 2026. The company has not disclosed the size or price of its first planned acquisition.

    AI Portfolio Launches with Private Company Exposure

    Genius Group established the second part of its treasury in May 2026, when the board authorized an AI portfolio with an initial investment plan of up to $100 million. The company made its first allocation in June through funds providing exposure to private companies, including OpenAI, Anthropic, Anduril, and Databricks.

    SpaceX held the largest look-through weighting at 13.5% of the AI portfolio, according to the company. Genius Group said its portfolio also contained exposure to xAI, Figure AI, Replit, and other companies involved in AI models, robotics, and infrastructure.

  • Sparrow Bitcoin Privacy Wallet Releases Update After AI Flags Security Issues

    Sparrow Bitcoin Privacy Wallet Releases Update After AI Flags Security Issues

    Privacy-focused Bitcoin wallet Sparrow Wallet released version 2.5.4 on Thursday following an AI-assisted code review that produced the majority of the update’s fixes, developer Craig Raw told Decrypt.

    AI Review Prompted by Evolving Threat Landscape

    Raw said the review was driven primarily by the release of unrestricted Chinese AI models and the new ability to search large codebases for potential exploits. He did not identify the specific models used to review Sparrow’s code.

    The initiative followed a July attack that exploited a flaw in Coldcard’s seed-generation code. That vulnerability allowed an attacker to reconstruct private keys without physical access to the devices. Coldcard manufacturer Coinkite stated it believed AI may have helped the attacker discover the flaw.

    “Obviously, the Coldcard incident triggered a great deal of activity within the Bitcoin space itself, but it was really the sudden arrival of the capability to search large codebases for potential exploits,”

    Raw told Decrypt.

    Asked which fixes originated from the AI-assisted review, Raw replied:

    “Most of them—it was the bulk of the work in this release.”

    Key Security Enhancements in Version 2.5.4

    Launched in 2020, Sparrow Wallet provides privacy and security tools such as coin control, Tor support, and hardware wallet and air-gapped signing capabilities to keep private keys offline.

    The official changelog lists dozens of security changes designed to reduce trust in external services. Highlights include:

    • Verification that transactions returned by Electrum servers match the requested data.
    • Cryptographic proof checks that transactions were recorded in a Bitcoin block.
    • Verification of the latest chain block before displaying transactions as confirmed.

    BitBox02 hardware-wallet security is strengthened, now requiring firmware version 9.4.0 or later and anti-klepto protection to prevent a compromised device from leaking private-key information during signing.

    Additional changes affect Ledger, Trezor, and Keycard device handling, multisignature wallets, Payjoin, wallet imports, and partially signed Bitcoin transactions. The update also redacts Bitcoin Core credentials and other secrets from debug logs, restricts access to wallet and backup directories, and closes local DNS leaks when using Tor.

    No Evidence of Exploitation, but Update Recommended

    Raw emphasized that the volume of changes does not indicate an immediate threat to user funds.

    “Nothing was found that was likely to put funds at risk,”

    he said, adding that he personally reviewed each issue.

    “Every issue raised was carefully reviewed by myself, and multiple independent AI passes,”

    Raw stated.

    He reported no evidence that the issues were exploited or that Sparrow users were affected, and considers such exploitation unlikely. Nevertheless, he recommends installing the update, while acknowledging that users with air-gapped setups may hesitate to modify their configurations.

    “I always want people to update, and I recommend it—but of course there are those who are perhaps running Sparrow on air-gapped computers who are reluctant to make any changes to their setup,”

    Raw said.

    “In these cases, I would encourage reading the changelog regardless to make an informed choice.”

    Broader AI Security Push in Bitcoin Ecosystem

    Sparrow’s review reflects a wider trend across the Bitcoin ecosystem, where developers are increasingly using AI to scan wallets, payment protocols, and code libraries for vulnerabilities before attackers can exploit them.

  • Trump Family Crypto Schemes Cost Investors Over $4.7 Billion

    Trump Family Crypto Schemes Cost Investors Over $4.7 Billion

    Trump Family Crypto Ventures Cost Investors Over $4.7 Billion, Public Citizen Report Finds

    A new report from the watchdog group Public Citizen reveals that investors in cryptocurrency schemes launched by the Trump family have collectively lost more than $4.7 billion. The findings, published Thursday, arrive as President Donald Trump urges the Senate to pass crypto market structure legislation next month.

    Official Trump Memecoin Drives $3.2 Billion in Investor Losses

    The Official Trump (TRUMP) memecoin stands as the primary source of losses, accounting for $3.2 billion. The president unveiled the token three days before beginning his second term. According to Public Citizen, the token surged to a trading price above $73 within two days of its launch before collapsing. It currently trades below $2, as reported by Cointelegraph and Raw Story.

    Public Citizen emphasized that the $3.2 billion figure represents wealth transferred to early insiders rather than vanished funds. Data shows that 1% of wallets captured 80% of gains, while 65% of holders remain underwater, collectively nursing the $3.2 billion loss.

    President Trump did not lose money on the venture. He neither invested nor spent cash on his wallet, which is valued at $271 million. Additionally, he earned $635 million in licensing fees from the token last year, according to Raw Story.

    World Liberty Financial Tokens and NFT Trading Cards Add to Losses

    World Liberty Financial’s governance token—linked to the project founded by Eric Trump and Donald Trump Jr.—accounts for at least another $1 billion in total losses. The token peaked at $0.33 in September 2025 and now trades below $0.06. Public Citizen notes that private purchasers who bought in at $0.015 or $0.05 are up 15% to 283%, while public market buyers near the peak may be down 83%.

    The 2022 Trump NFT trading cards, initially sold at $99 each, saw overall value plummet from $12.3 million to $3 million, leaving holders nearly $9.3 million in losses. Trump collected $7.2 million in licensing fees and royalties from the cards.

    One asset avoided significant harm. Public Citizen says that buyers of World Liberty’s USD1 stablecoin haven’t suffered major losses.

    Trump’s Crypto Earnings Top $1.4 Billion Amid Investor Losses

    The report tallies the former president’s earnings across these projects:

    • $7.2 million from NFT trading cards
    • $600 million-plus from World Liberty token sales and equity position
    • $635 million from memecoin licensing fees
    • $197 million in capital contributions to World Liberty

    These figures align with Trump’s 2025 crypto-related earnings totaling $1.4 billion, excluding his equity positions in the companies.

    The White House did not immediately respond to a Cointelegraph request for comment. Spokesperson Anna Kelly previously stated there were no conflicts of interest regarding Trump’s crypto assets.

    Public Citizen Urges Ethics Provisions in CLARITY Act

    Zach Everson, research director for Public Citizen’s Trump Accountability Project and the report’s author, urged critics not to mock buyers. Trust me, I get the desire to sneer, he wrote in a Thursday post, before arguing that buyers got screwed over nevertheless.

    Public Citizen used the findings to renew its call for ethics provisions in the Digital Asset Market Clarity (CLARITY) Act, arguing that the president’s policy choices and personal portfolio cannot be separated and that any market-structure law should force a sitting president and his family to divest from the industry.

    Legislative Timing and Senate Hurdles

    The timing is deliberate. Trump met with crypto executives last week and called for a fair version of the CLARITY Act to pass once the Senate reconvenes. The bill faces a cloture vote on September 15 and requires at least 60 senators to advance.